All the students who cannot afford their educational expenses, need some financial support. Some students apply for the scholarships where as some of them apply for the loans so that they can easily fulfill their essential requirements. Both the scholarships and loans are financial aids that are especially designed to help the students and other people. Since both are fulfilling the same needs of the people, but there is a huge difference between these two as well.
• The money that students get as the result of scholarships is the awarded money and student have no need to pay it back where as the money that a student get as a result of loan is not an award and the student have to pay it back to the organization after some period of time. Based on the period of time, the student also has to pay the interest to the company. All the interest rate and the duration are decided before getting the payment.
• In order to apply for the scholarship, you need to maintain good grades as well as you have to provide detailed information in your application while on the other hand you do not need to maintain a certain GPA to apply for any loan.
• You have to struggle a lot in getting scholarship because there is a huge competition among the applicants, while on the other hand you do not have to work so hard, but there is a huge chance that you can get it.
• Scholarships are offered by many organizations and institutes, but loans are provided by government organizations like banks and some other special institutes.
All the scholarship holder makes their own place in the society, either by hard work or with the help of other skills like communication skills, problem solving skills and many others.